As of right now, the group, via the DJ Airlines and S&P Airlines Indexes, faces a decent amount of falling resistance.

As such, we wouldn’t be surprised to see some near-term selling/pressure.

That said, as the ratio chart of the S&P Airlines Index vs. SPX shows on the far right, the group is still down ~75% on a relative basis vs. the broader market since the early 2000s.

The former point about near-term resistance is the “trees” and the latter point about the group still being down 75% on a relative basis is the “forest”.

In other words, we believe airlines are apt to out-perform the broader market by a wide margin over the coming five-ten years driven by commodity cost visibility, industry consolidation, a rising USD and steadily improving global economies.

Never hurts taking profits in the near-term though given the group is up 38% over the past six months vs. a ~8% increase in the SPX over the same period.